USD Index: Break above 102/102.50 essential to affirm an extension in bounce – SocGen

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26 July 2023

USD Index: Break above 102/102.50 essential to affirm an extension in bounce – SocGen

US Dollar Index consolidates above 101.00 following Tuesday's pullback. Economists at Société Générale analyze DXY's technical outlook.

Failure to establish above 102/102.50 could result in a pullback towards 100.35

DXY has rebounded after forming an interim trough near 99.60 earlier this month. It is now approaching potential resistance zone of 102/102.50 representing the low of June and a multi-month trend line that capped previous bout of up-move.

Daily MACD is still within negative territory denoting lack of steady upward momentum.

A break above 102/102.50 would be essential to affirm an extension in bounce.

Failure could result in a pullback towards 100.35 and recent trough of 99.60.

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